🏦 Suriname's credit rating improves out of selectively default

Happy Monday!

This week we cover Suriname’s improved credit rating, a whistleblower case against the president, the upcoming judgement against convicted ex-president Desi Bouterse, and further criticisms on the continuing OMO’s by the central bank

Suriname’s credit rating has been upgraded from SD to CCC+/C

• Agreements have been reached with official creditors, excluding China, commercial creditors, and the Central Bank of Suriname, with ongoing discussions for smaller debt amounts.

• The upgrade follows macroeconomic developments, reforms, and recent debt restructuring, leading to Suriname's exit from the 'Selective Default SD' status.

• Holders of the Republic of Suriname's two Eurobonds have received new debt securities worth US$660 million, along with oil-related security, in exchange for defaulted debts from 2020.

• Despite positive steps, challenges persist, and Suriname remains committed to further reforms and negotiations with international financial institutions for additional support. The public is urged to stay informed and support the country's progress during the recovery period.

• Inflation is decreasing from 60% to around 40%, and the position of the Central Bank of Suriname has been strengthened.

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• President Chan Santokhi expresses gratitude for the positive assessment from the IMF, acknowledging the sacrifices made by the population to save Suriname from financial ruin.

• Suriname's economy is projected to grow by approximately 2 percent in 2023, with declining inflation and international reserves covering about five months of imports, according to the IMF.

• The president highlights recent positive developments, including a program to purchase affordable food, improvements in the national airline SLM, and agreements with unions to contribute to economic recovery.

• The president successfully convinced the IMF to make room for additional financial support in 2024, extending the assistance package until March 2025, with a focus on aiding vulnerable households, supporting public servants' purchasing power, and making investments for economic growth.

Whistleblower files complaint against President and Minister of Public Works

• The Public Prosecution Service (OM) in Suriname has confirmed receiving an anonymous complaint against President Chan Santokhi and Minister Riad Nurmohamed of Public Works (OW).

• The whistleblower alleges fraudulent actions that have disadvantaged the State of Suriname in favor of private company Pan American Real Estate NV for US$ 7,500,000.

• The complaint, filed with eight supporting documents, urges the Attorney General to initiate a criminal investigation against President Santokhi and Minister Nurmohamed.

• Pan American Real Estate, a private company focusing on subdividing and building homes, welcomes the investigation, stating willingness to provide access to documents. The director emphasizes completing 562 houses in two years and claims the State did not fulfill its obligations under the agreement.

• The whistleblower accuses Minister Nurmohamed of proposing compensation of US$ 7,449,789.58 to Pan American based on a falsely drawn-up council proposal lacking legal basis. The whistleblower claims intentional detriment to the State without a valid reason for payment.

• The Minister is alleged to have used a shortcut, submitting council proposals with false information, leading to a missive from the president approving the payment to Pan American.

• President Santokhi responded to media inquiries about an anonymous whistleblower's case, stating the government is aware of the situation and emphasizes the government's adherence to a constitutional state, respecting a strict separation of powers, and leaves the decision on the whistleblower's information to the Public Prosecution Service.

Public tensely await the verdict on convicted ex-president Desi Bouterse on December 20

• During the commemoration of the victims of December 8, 1982, lawyer Rani Sohansingh emphasized that the perpetrators, without discrimination, must serve their full sentence after the verdict, rejecting any sentence reduction or pardon.

• The theme of the service was "Justice knows no time," and Betty Goede, chair of the Organization for Justice and Peace (OGV), stated that justice has been waiting for 41 years.

• Father Toon te Dorsthorst acknowledged the difficult journey to the final verdict, expressing gratitude for honest and courageous judges. He believes truth and justice will prevail on December 20, ending 41 years of the murderers being free to say and do anything.

• Te Dorsthorst highlighted the brutality of the murders of 15 defenseless civilians and quoted the Bible, stating, "Kiri wan libisma na wan tru tru zondu" (killing a person is a true sin).

  

• Minister Kenneth Amoksi of Justice and Police, representing President Chan Santokhi, expressed gratitude to the relatives of the 1982 December 8 victims for their enduring belief in justice and hope for a day when justice prevails.

• The government is prepared for any emergencies during the December 20 hearing for the verdict in the December 8 criminal case. Minister Amoksi assures order and safety during the proceedings.

• Meanwhile the NDP (Desi Bouterse’s party) has called for a mass meeting on December 16th to discuss potential results and consequences of the verdict

The Central Bank’s Open Market Operations receive even more criticism by members of Parliament

• Despite unanimous approval of laws strengthening banking supervision in the National Assembly, there is disagreement over the implementation of Open Market Operations (OMOs).

• Party leaders Asis Gajadien and Rabin Parmessar express concerns about monetary financing through OMOs, criticizing the government's approach. Minister Stanley Raghoebarsing disagrees, attributing the situation to pressure on the Central Bank governor, Maurits Roemer.

• The National Assembly approves laws related to the Supervision of Banking & Credit System and Recovery and Resolution of Credit Institutions unanimously, emphasizing the importance of strengthening the financial sector.

• Asis Gajadien argues that daily OMOs imply monetary financing and calls for restrictions on the Central Bank's (CBvS) powers, highlighting the societal cost of high interest rates paid to banks.

• Parmessar describes the situation as a "criminal act against the people," criticizing the extremely high interest rates and advocating for a separate discussion on OMOs, suggesting a theme treatment.

• Minister Raghoebarsing acknowledges mistakes in OMO implementation, citing lack of experience. He notes the International Monetary Fund's position on aligning OMOs with market conditions and emphasizes the need for an investigation into the circulation of SRDs. Raghoebarsing defends withdrawing money from the market to prevent higher inflation.

• Meanwhile members of the ABOP (the vice president’s party) and PL party were notably absent without prior notice